MELBOURNE, AUSTRALIA: Southern Cross Gold Ltd (SXG) and Mawson Gold Ltd (MAW) have announced a merger through an Australian scheme of arrangement transaction.

The merger, dated 11 June 2024, will result in the formation of a new entity retaining the name Southern Cross Gold Ltd, which will be dual-listed on both the Australian Securities Exchange (ASX) and the TSX Venture Exchange (TSXV).

Tom Eadie, Non-Executive Chairman of SXG, expressed strong support for the merger, highlighting the benefits of a simplified corporate structure and dual listing. The merger is expected to provide access to broader capital markets, eliminate major shareholder overhang, and attract lower equity capital costs, facilitating the development of the Sunday Creek Project.

The merger is a strategic step towards consolidating ownership of the Sunday Creek gold-antimony asset, chosen for operational, corporate, and international tax efficiency. It aims to unlock value for shareholders by simplifying the ownership structure and enabling access to Australian and North American capital markets. The transaction is also expected to transition SXG’s shareholder base to a more institutionally dominated register, with significant support from major shareholders.

Michael Hudson, Managing Director of SXG, emphasized the merger’s role in consolidating the ownership of Sunday Creek in a dual-listed structure, which is in the best interests of all shareholders. The merger is set to reduce the cost of capital for the development of the globally significant Sunday Creek gold-antimony discovery.

The combined group will be led by the current Australian management team and Board of Southern Cross, with Mr. Tom Eadie serving as Non-Executive Chairman and Mr. Michael Hudson as President & CEO. The merger is expected to resolve the major shareholder overhang, reduce costs, and ensure share fungibility between the North American and Australian stock exchanges.

The terms of the proposed transaction will be negotiated over the coming weeks, with SXG preparing a Scheme Booklet for its shareholders. Special independent board committees have been formed to negotiate the terms of the merger, which is expected to take approximately three to four months, during which time SXG shares will trade normally with minimal interruptions.

This merger marks a pivotal moment for Southern Cross Gold, as it sets the stage for becoming one of the highest cashflow margin gold mines globally, with a focus on environmental sustainability and stakeholder interests. The strategic merger is poised to enhance the company’s growth and high-grade gold story across both the Australian and North American markets.

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